Halo Resources Ltd.

Halo Resources Ltd.

May 13, 2008 05:00 ET

Halo Intersects 2.44% Copper Over 2.6 m at the Fidelity-Sherridon Zone

TORONTO, ONTARIO--(Marketwire - May 13, 2008) - Lynda Bloom, President and CEO of Halo Resources Ltd. (TSX VENTURE:HLO)(FRANKFURT:HRL) is pleased to announce that preliminary testing of the Fidelity Zone and geophysical target E10 intersected copper-rich sulphides and broad zones of disseminated mineralization associated with strong VMS-style alteration. The Phase I drill program extended the known strike length of the mineralized stratigraphy an additional 600 m north from Bob Lake and intersected up to 2.4% copper over 2.6 m on the eastern limb of the Sheila Lake fold (see Figure 1).

To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/halofig1.pdf

"The Sheila Lake fold is an important target area as our regional analysis demonstrates that similar fold hinges elsewhere on the property host the East Mine, Lost Lake and other known deposits," says Lynda Bloom, President & CEO. "Professor Doug Tinkham of Laurentian University will lead our mapping and geological studies at the Fidelity Zone for the second year to identify targets for the Phase II drill program. We have found the broad zones of copper-zinc enrichment coupled with intense VMS-style alteration that are key indicators for VMS-deposits and are very encouraged by the preliminary results."

Fidelity is 100%-owned by Halo Resources and is located within 4 km of four other known deposits, including the Cold Lake, Bob Lake, Jungle Lake and Park Lake deposits. Mineralization is near-surface and located next to an operating rail line that connects to Flin Flon.

Diamond drilling continues at Bob Lake and the southern trend of the Lost Lake deposit. An aggressive exploration program is planned for the field season to examine high priority targets.

Technical Highlights

Azimuth/ From To val(i) Copper Zinc Silver
Hole Dip (m) (m) (m) (%) (%) (g/t)
8-91 201/45 154.8 157.8 3 1.15 less than 0.1 4.8
and 192.6 195.2 2.6 2.44 less than 0.1 5.1
and 239.9 241.1 1.2 1.42 less than 0.1 6.1
8-92 201/45 88.9 91.5 2.6 0.68 less than 0.1 3.3
8-101 326/45 141.00 143.00 2.00 less 1.63 less
than than
0.1 1.5

(i) Widths may be overstated by up to 15% in steeply dipping holes.
Geometry of the ore body has not been determined so that true widths
cannot be determined at this time.

A total of seven (7) drill holes for a total of 1875.7 m were completed in an area of 600 m by 400 m located on the eastern limb of the Sheila Lake fold.

Drill holes DH08-91, 08-92, 08-94 and 08-95 target the main historical Fidelity Zone mineralization. In addition to the significant assays in the table above, broad zones of dissemination pyrite and trace chalcopyrite were reported in hole DH08-94 at depths of 38.6 to 69.9 m and in hole DH08-95 from 46.2 to 66.8 m. These holes tested the depth extent of the historical mineralization over a 100 m section of the more than 500 m strike length of the Fidelity Zone. Due to the proximity of the Sheila Lake fold hinge the orientation of the mineralized zone changes abruptly, relative to its orientation just 500 m to the southeast at Bob Lake. The Phase I test of the area was designed to augment 2007 mapping and provide three-dimensional information for further 2008 structural studies.

Drill holes DH08-98, 08-100 and 08-101 target airborne geophysical anomalies from the Geotech 2006 survey. Maxwell models of the anomalies created by Condor Consulting suggested a near-vertical conductive source. Holes DH08-98 intersected 7 m of graphitic schist at a depth of 408 m and 08-100, drilled 350 m northwest, intersected weakly graphitic felsic gneiss between 108 to 142 m downhole; the weak and narrow graphitic units do not adequately explain the extent and strength of the E10 geophysical anomaly. The hole drilled between these two holes, DH08-101, intersected a narrow zone of zinc-rich sulphides at a depth of 140 m associated with an important 53 m-wide zone of intense sillimanite-anthophyllite, a style of alteration that is seen at Lost Lake and the surface expression of the Sherridon East Mine deposits.

Sampling, assaying and quality control procedures are consistent with those reported in the Technical Background of the press release issued February 15, 2007. The above information has been prepared under the supervision of Stephen MacConnell, who is designated as a "Qualified Person" with the ability and authority to verify the authenticity and validity of the data.

About the Sherridon VMS Property

The Sherridon VMS Property covers an area of over 20,876 hectares and hosts the past-producing Sherridon Mine that was operated by Sherritt Gordon Mines from 1933 to 1950 and produced 7.7 million ones of ore with recovered grades of 2.46% copper and 0.8% zinc. Results from an airborne geophysical survey completed in the summer of 2006 identified an additional 122 targets. Over 25,000 m of diamond drilling have been completed since November 2006 and drilling continues year-round. A NI43-101 compliant resource estimate for the Sherridon Jungle Lake Zone has been filed on SEDAR and resource calculations are planned for the nearby Cold, Lost and Bob Zones. The property is located only 70 km northeast of the mining and metallurgical complex in Flin Flon operated by HudBay Minerals Inc. Future development of the property is facilitated by the presence of an all-weather road and railroad access as well as a power line and communications tower.

About Halo Resources Ltd.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. Currently the Company owns or has an interest in 3 projects: Duport, which is an advanced stage gold project; Red Lake, which is a gold exploration project, and the Sherridon project that is a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. The Company is operated by an experienced management team and backed by a strong network of mining financiers. The Company's growth strategy is to develop a diversified portfolio of advanced mining projects.

This news release presents "forward looking information" within the meaning of the applicable Canadian securities laws that involve inherent risks and uncertainties. Forward-looking information includes, but is not limited to, information with respect to the proposed private placement. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Halo to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks related to financings; risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management and officers of Halo Resources Ltd. believe that the expectations reflected in such forward-looking information are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Halo does not undertake to update any forward-looking information referenced herein, except in accordance with applicable securities laws. Trading in the securities of Halo Resources Ltd. should be considered highly speculative.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Halo Resources Ltd.
    Lynda Bloom
    President & CEO
    (416) 368-7045
    Email: lbloom@halores.com
    Halo Resources Ltd.
    Marc Cernovitch
    (416) 368-7045
    (416) 368-9805 (FAX)
    Website: www.halores.com